_pages-to-jpg-0001.jpg)
Embassy Office Parks REIT, India’s first listed real estate investment trust and Asia’s largest office REIT by area, reported a stellar second quarter for FY2026, marked by record leasing activity, rising occupancy, and the highest quarterly distribution since its listing.
The REIT leased 1.5 million square feet (msf) of office space during the July–September quarter, reflecting strong demand across its portfolio. Bengaluru, the country’s tech capital, led the charge, accounting for more than 85% of total leasing. The REIT also saw renewed momentum in Chennai, where its recently acquired asset attracted several global capability centres (GCCs).
“We are pleased to report an outstanding quarter across our business — from strong leasing momentum to record distributions,” said Amit Shetty, Chief Executive Officer of Embassy REIT. “As we scale our development pipeline and explore new opportunities, our focus remains on delivering sustainable, long-term value for all stakeholders.”
Leasing Momentum and Occupancy Surge
During the quarter, the REIT signed 20 deals across new leases, renewals, and pre-leases, highlighting sustained corporate demand for high-quality office spaces. New leases alone accounted for about 1 msf, with renewals adding another 0.4 msf.
This performance lifted overall portfolio occupancy to 93% by value and 90% by area. Bengaluru maintained a strong 95% occupancy, Mumbai remained fully occupied at 100%, while Chennai and Noida stood at 96% and 92% respectively.
Financial Strength and Record Distributions
Revenue from operations rose 13% year-on-year to ?1,124 crore, while Net Operating Income (NOI) grew 15% to ?927 crore. Reflecting its healthy balance sheet and stable cash flows, the Board approved a record distribution of ?617 crore, translating to ?6.51 per unit — a 12% year-on-year increase.
The distribution will be paid by November 14, 2025, to unitholders on record as of November 8.
Embassy REIT also broke new ground in the Indian REIT market by completing the country’s first 10-year non-convertible debenture (NCD) issuance, raising ?2,000 crore from leading institutional investors. Additionally, it secured ?400 crore through commercial paper at an attractive 6.44% annual rate, underscoring investor confidence in its credit fundamentals.
The trust’s independent valuation as of September 2025 showed its Gross Asset Value rising 8% year-on-year to ?63,980 crore, while its Net Asset Value increased 7% to ?445.91 per unit.
Expanding Development Pipeline
Embassy REIT continues to expand its footprint through new developments. It completed 0.9 msf of premium office space in Bengaluru during the quarter, fully leased to a Fortune 500 retail major.
In Chennai, it plans to launch 2 msf of new projects, bringing the total development pipeline to 7.2 msf. Of this, 42% has already been pre-leased, including expansion options, reflecting strong tenant interest. These projects are expected to deliver attractive yields upon completion.
Hospitality and Ancillary Growth
The REIT’s hospitality segment also showed strong performance, with EBITDA rising 12% year-on-year. Average daily rates (ADR) across operating hotels grew by 16%, driven by robust business travel demand and a steady recovery in corporate events.
Outlook: Scaling for Sustainable Growth
Embassy REIT’s performance reinforces the resilience of India’s office market and investor confidence in Grade-A commercial assets. The trust’s combination of stable rental income, disciplined capital management, and a robust development pipeline positions it well for continued growth.
“As India’s economy and office sector evolve, Embassy REIT remains committed to building an ecosystem of high-quality, sustainable workplaces,” said Shetty. “Our focus on operational excellence and innovation ensures we continue to create long-term value for our tenants and investors alike.”
With its record leasing, rising occupancy, and expanding pipeline, Embassy REIT is not only consolidating its leadership in India’s office real estate segment but also setting new benchmarks for performance and governance in the REIT industry.
